Strategic Hotels Makes $330 mil Acquisition
Strategic Hotels & Resorts are planning to acquire the Ritz-Carlton Laguna Niguel
CALFORNIA, May 11, 2006. The acquisition, which is expected to close in July, remains subject to customary closing conditions. The Ritz-Carlton Laguna Niguel, a 393-room luxury resort in Dana Point, California, sits upon 18 acres perched atop a bluff overlooking the Pacific Ocean. The hotel recently completed a $40.0 million repositioning including the renovation of all guestrooms and lobby areas, a new ocean view restaurant, and the development of a 6,500 square foot spa and 2,500 square foot fitness center. The resort contains 25,600 square feet of executive meeting space, 54,000 square feet of outdoor meeting space, five premium food and beverage outlets, and full beach access.
The company forecasts a period of ramp-up during the next twelve months after the renovation and estimates that the property will contribute between $11.0 million and $12.0 million of EBITDA in the last six months of 2006, and between $23.0 million and $24.0 million in the first twelve months of ownership.
Additionally, the company entered into an agreement with KSL RLP Holdings, LLC, an affiliate of KSL Capital Partners, LLC, to sell the Marriott Rancho Las Palmas Resort & Spa in Rancho Mirage, California, for $56.0 million, or $126,000 per room.
The 444-room property was projected to contribute approximately $3.0 million in EBITDA in 2006, resulting in an 18.7x EBITDA multiple on the sale. The transaction, subject to customary closing conditions, is anticipated to close in July.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
